AKP Phnom Penh, February 03, 2025 --

The Securities and Exchange Regulator of Cambodia (SERC) and International Finance Corporation (IFC) have recently signed a Cooperation Agreement to develop Cambodia's derivatives market.

The Cooperation Agreement was inked by H.E. Sou Socheat, Delegate of the Royal Government in charge as Director General of the Securities and Exchange Regulator of the Cambodia and Mr. Tom Ceusters, Director, Capital Markets and Investments, International Finance Corporation, according to a press release published on Feb. 1.

H.E. Sou Socheat said that Cambodia's derivatives market holds immense potential to contribute to the nation's financial development by offering innovative financial instruments that support risk management and investment diversification.

“As we sign this agreement today, let it symbolise more than just a document; let it be a testament to our collective determination to achieve meaningful and lasting progress,” he said.

The journey ahead will require dedication, collaboration, and a shared commitment to excellence, he added.

Mr. Tom Ceusters stated that the establishment of a well-functioning derivatives market is crucial for enhancing financial stability, managing risks, and fostering economic growth.

“This partnership underscores our shared commitment to creating a transparent and efficient financial infrastructure that will benefit investors, businesses, and the broader economy,” he said.

Following the signing, SERC and IFC co-hosted a capacity building programme to offer in-depth insights into the derivatives market, which is an essential tool for businesses in Cambodia to hedge risks. The program covered topics such as derivative pricing and valuation, risk and risk mitigation mechanisms, and included case studies on regional and international market development.

The programme was attended by officials from the Ministry of Justice, members of the National Bank of Cambodia, as well as regulatory and industry participants.

By Chea Vannak